What is the minimum limit for signage coverage required in Bft's property insurance?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Liability with limits not less than $500,000 each accident, $500,000 disease – each employee, and $500,000 disease – policy limit.
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- Property insurance written on a special causes of loss coverage form with limits not less than the current replacement cost of the Studio's business personal property (including furniture, fixtures and equipment) and leasehold improvements (tenant improvements). Such Property insurance shall include glass coverage with limits not less than $25,000, signage cov
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, franchisees must maintain property insurance with specific coverage limits. This insurance must be written on a special causes of loss coverage form and include coverage for the Studio's business personal property, leasehold improvements, glass, signage, and business interruption/extra expense.
Specifically, the signage coverage must have a minimum limit of $10,000. Additionally, the glass coverage must have a limit of at least $25,000, and the business interruption/extra expense coverage must cover at least 12 months of rent.
Bft franchisees must ensure their property insurance policies meet these minimum requirements to adequately protect their business assets and operations. It is also important to note that the insurance company providing the coverage must be licensed in the state where the Studio operates and have an "A" Rating Classification as indicated in A.M. Best's Key Rating Guide.